EMF 7: Macroeconomic Impacts of Energy Shocks

Study of how oil price volatility affects U.S. economic performance and its considerable significance for many of today’s decisions. How reduced prices have affected the economy, what happens when oil supplies are threatened, what policies appear promising for helping the economy to adjust. The Forum used a comparison of existing models of the U.S. economy and looked at the short- to medium-term effects of sudden increases and decreases in the price of imported oil. The group created scenarios by comparing hypothetical oil shocks: toil oil prices increases of different magnitudes, an oil price reduction, and an increase in domestic energy prices. The following report deals with these scenarios and findings.